He may not have invented the Internet, but George W. Bush knows a thing or two about the technology industry.

First off, he knows tech executives gave him a truckload of campaign money. Second, he knows a happy tech sector is crucial to bringing the nation's slowing economy in for a soft landing.

Both facts bode well for Silicon Valley, where a new lineup of political donors is anxiously waiting to bend the president-elect's ear.

"He may not understand what the right-click button on his mouse does, but he understands what the high-tech industry can do for the general economy," said John Palafoutas, senior vice president for domestic policy at the American Electronics Association, a tech trade group in San Jose.

Big-hitting Republicans who stand to gain better access to the Oval Office include Cisco Systems Chairman John Chambers, who was Bush's leading campaign contributor in the Bay Area; Jim Barksdale, the former Netscape executive; and venture capitalist Floyd Kvamme. Outside the 408 area code, Dell Computer Chairman and CEO Michael Dell is a longtime Bush confidante from Texas.

The Democrats, however, can take solace in the conformity of opinion in the technology industry. Tech policy positions rarely break down in partisan fashion.

"Both Bush and Gore promised to be very much pro-technology, and I think that promise will be fulfilled by the Bush administration," said Wade Randlett,

an active valley Democrat who was an adviser to Gore. "The bigger difference is on the level of understanding by the core group that's going into the White House."

Indeed, Bush is rarely confused with Gore on the issue of tech savvy. His general lack of understanding, however, could benefit the industry. Many expect the president-elect to bring one or more of his pals in the technology industry to Washington in a high-level capacity.

"They need to get a high-level person and put them in a Cabinet position and not bury them in a deputy committee position," said Randlett.

"The level of the position will say as much about Bush's intention with technology as his policy positions. I think you can look for one of the top 10 Bush campaign contributors to go to Washington and serve in some significant capacity."

Barksdale, who is semiretired and ranks among Bush's top donors, is often mentioned as a possibility for such a position. Lezlee Westine, co-CEO of the valley lobbying group TechNet, is another possibility. She's been spending a lot of time in Washington working on transition issues.

"Bush has been a champion on all of our new economy issues, such as free trade and H-1B (immigrant worker visas)," said Westine. "He has developed many strong relationships. It's very exciting to have someone who shares the philosophy of our new economy leaders."

Another issue looming large for both Bush and his Silicon Valley constituency is the ongoing Microsoft antitrust trial.

In June, a federal judge sided with the Justice Department and found the software behemoth to be a monopolist and ordered it to be carved into two separate companies. However, the case is still far from decided.

An appeals court in Washington, D.C., made up of a majority of Republican appointees, is currently reviewing the case. But many believe it will ultimately be decided by the U.S. Supreme Court.

If that turns out to be true, Bush's potential appointees could produce a more conservative opinion -- leaving Microsoft whole -- or rekindle settlement talks between the two sides.

"For Microsoft, the key feature of a Bush victory isn't a significant change in the (Justice Department's) litigating position, but a greater measure of assurance that whatever the Appeals Court does will stick -- the specific outcome is that there will probably be no breakup," said Bill Kovacic,

Some believe such a decision could usher in a new era of corporate protection.

"Republicans have gone to considerable extremes to circumvent the free market to protect firms, whether it's from foreign competition or the environment," said Richard Gilbert, a former economist at the Justice Department during the Clinton administration and now an economics professor at the University of California at Berkeley.

"That can be very costly," Gilbert added, particularly to young upstarts trying to gain a berth in the marketplace.

Gilbert said a Bush administration could create a Silicon Valley dominated by giants -- more so than it is today.

But others in the industry said Bush and his appointees will probably implement policies that will help some startups survive.

"With venture capitalists becoming more risk averse, small companies may need to partner up more," said Vince Sampson, spokesman for the Association for Competitive Technology, an information technology trade group that has backed Microsoft in its antitrust case. "With a Bush administration, they would have to be free to aggregate without being subject to antitrust review."

Though Bush's likely pro-business policies could be a boon to mergers among oil concerns, car companies or other old line industries, Gilbert said the high-tech industry must be handled differently.

"There's a co-dependency in Silicon Valley," Gilbert said. "Firms often depend on their competitors for access to intellectual property or to hardware systems or communications."

Gilbert said Bush may support a more hands-off approach to regulation of the high-tech world than President Clinton but could seriously jeopardize the economy by creating an unlevel playing field.

"Some people claim that if you turn off antitrust (enforcement), that the stock market will go up and that's good for the economy," Gilbert said. "I don't think so. It's like saying there will be no speed limits on roads. Sure, you might get from San Francisco to Sacramento faster, but there would be havoc in the process."

Gilbert also worries about Bush's impact on the flow of information. In particular, he believes Bush may back corporate measures to limit access to digital films, music and other content.

"In the new economy, access to information is so important," Gilbert said. "Strong property rights can make access more expensive and could grind the flow of information to a halt if everyone has to pay someone to access every little bit of information."

Sampson disagrees. He believes Bush will help the high-tech marketplace increase efficiency and benefit consumers by leaving it free to set its own rules about privacy and how much to charge for content or access.

"The tech industry moves very fast," Sampson said. "Anything that impedes that light speed innovation is bad for the (information technology) industry and the trickle up effect is that it's bad for the economy."